State Duma approved a broad tax bill introducing new PIT benefits, family and SMO support, sector-specific tax changes, and eased international tax measures.

RF Report

Russia’s State Duma has approved in its third reading a wide-ranging tax policy bill introducing new personal income tax (PIT) benefits, expanding support for families and participants in the Special Military Operation (SMO), and revising several tax regimes across the economy.

The measures were developed with input from lawmakers, public organisations and the business community, and implement directives from the President and the Government.

This announcement was made on  20 November 2025.

Changes to special tax regimes and sector-specific measures

The bill revises a number of sectoral tax rules:

  • Zero VAT rate for precious-metal ore supplies: Mining companies selling ore, concentrates and other products containing precious metals directly to refiners will be able to apply a zero VAT rate.
  • Lower income thresholds for simplified regimes: VAT liability thresholds under simplified and patent regimes will gradually fall to RUB 20 million  in 2026,  RUB 15 million in 2027, and RUB 10 million from 2028.
  • No penalties for first-time VAT filers: Businesses moving to VAT for the first time will not face penalties for failing to submit their initial return. New VAT payers may also opt out once from a reduced VAT rate in their first year to avoid planning errors.
  • Streamlined tax instalments: Fewer documents will be required when applying for instalments, and more seasonal businesses will qualify. The maximum term for investment tax credits will increase from five to ten years.
  • Regional investment deductions: Regional authorities will be allowed to set their own criteria for granting investment tax deductions on corporate profit tax.
  • Expanded group offset rules: Any company within a group may use the FINV deduction transfer mechanism, provided the investment is made by an eligible company under government criteria.
  • Higher reverse excise coefficient in 2026: For oil refiners that have not completed modernisation projects, the coefficient will rise to 85%.
  • Zero excise on certain alcohol used in fuel: Denatured ethyl alcohol used to produce high-octane gasoline will be exempt from excise duty.
  • New taxation model for bookmakers: Bookmakers will be taxed at 7% of the difference between bets received and winnings paid out. They will also pay corporate profit tax, and filing rules at the company’s location are clarified.
  • Extended relief measures: Special penalty-calculation rules for late tax payments and the accelerated VAT refund procedure will continue into 2026.

International tax provisions

The bill also extends several measures that ease the impact on businesses arising from the suspension of double tax treaties.

Key PIT and social support changes

The bill introduces multiple PIT benefits and targeted support measures for families with children and SMO participants and their relatives. These include:

  • Tax exemptions in emergency zones: Individuals will be exempt from land and property tax on assets located in areas subject to emergency regimes—such as natural disasters or counter-terrorism operations—where residents must temporarily relocate.
  • Transport and land tax relief: SMO participants and their family members will receive additional transport and land tax benefits.
  • Updated rules for the PIT benefit on home sales: The exemption for selling residential property to improve housing conditions will extend to families with incapacitated children of any age. Families with two or more children will also qualify if a new child is born after the sale but before 30 April of the following year.
  • Refined standard child deduction rules: Only income related to the taxpayer’s main tax base, calculated cumulatively from the start of the year, will be used when applying the standard child deduction.
  • Expanded social deduction for sports: Parents will be able to claim a broader social PIT deduction for children’s sports activities.
  • PIT exemption for “Rural Coach” payments: One-time compensatory payments received under the programme will not be taxed.
  • Broader application of the 13%/15% PIT scale: Payments linked to average earnings for work in the Far North—such as holiday pay, sick leave and travel allowances—will now be subject to the two-tier scale.
  • Interest income rules clarified: Interest earned on bank deposits will be subject only to PIT. This income will no longer be included when calculating the tax base for individual entrepreneurs using special regimes such as ЕСХН, УСН and АУСН.

Earlier, the State Duma approved in its second reading of a bill outlining major directions of the country’s tax policy, incorporating proposals from businesses and government agencies, and implementing directives from the President and Government on 18 November 2025.